Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Risk Management Practices in the Conventional Banks Working in Peshawar

Shehriyar Khalil, Liaqat Ali

http://dx.doi.org/10.6007/IJARAFMS/v5-i2/1562

Open access

The study is conducted to research the RMP and procedures pursued by conventional banks functioning in Peshawar region. In the study the risk management (RM) is elected as a dependent variable, whereas Risk assessment (RAs), risk identification (RI), risks monitoring (RMn), risk analysis (RA) and RMP (RMP) are taken independent variables. Data is collected through questionnaires on five Likert Scale. Total number of questionnaire distributed were 120, out of which 102 questionnaires were received with positive response from the banks. As per the regression, we found from the results that risk assessment and analysis, risk analysis and RMP have significant effects, and risk identification and risk monitoring have insignificant effects on RMP. The paper`s findings are limited to RMP`s of conventional bank operating in Peshawar region. This study will of value to those who are interested conventional banking industry.

Al-Tamimi, H., Al-Mazrooei, F. (2007), “Banks' Risk Management: A Comparison Study of UAE National and Foreign Banks”, The Journal of Risk Finance Vol. 8, Issue: 4, pp. 394 – 409.
Arman, A., Bin, A. M. R., and Hassan, B. C. H. M. (2009), “Risk Reporting: An Exploratory Study on Risk Management Disclosure in Malaysian Annual Reports”, Managerial Auditing Journal, Vol. 24, No.1, pp. 39-57.
Hassan, A. (2009). Risk management practices of Islamic banks of Brunei Darussalam, The Journal of Risk Finance Vol 10, No. 1.
Hassan, W. M. (2011). Risk management practices: a comparative analysis between Islamic banks and conventional banks in the Middle East, International Journal of Academic Research Vol. 3, No. 3.
Al-Ajmi, J., Hussain, H., and Al-Saleh, N. (2009), “Clients of conventional and Islamic banks in Bahrain: how they choose which bank to patronize”, International Journal of Social Economics, Vol. 36 No. 11, pp. 1086-112.
Iqbal, Z., and Mirakhor, A. (2007). An Introduction to Islamic Finance: Theory and Practice. Singapore: John Wiley & Sons (Asia) Pte Ltd.
Khalid, S., and Amjad, S. (2012). Risk management practices in Islamic banks of Pakistan. Journal of Risk Finance», vol. 13, issue 2, pp 148-159.
Koizol, C., and Lawrenz, J. (2008), “What makes a Bank Risky? Insights from the Optimal Capital Structure of Banks”, Journal of Banking and Finance, 33, pp. 861-873.
Shafiq, A., and Nasir, M. (2009), “Risk management practices followed by the commercial banks in Pakistan”, MS dissertation, COMSATS Institute of Information Technology, Islamabad.
Meyer, L. (2000), “Why risk management is important for global financial institutions”, paper presented at the Risk Management of Financial Institutions United Nations Conference Center, Bangkok.
Nazir, M. S., Daniel, A., and Nawaz, M. M. (2012). Risk management practices: A comparison of conventional and Islamic banks in Pakistan, American Journal of Scientific Research, Issue 68, pp. 114-122.
Nunnally, C. J. (1978), Psychometric Theory, McGraw-Hill, New York, NY.
Van Greuning, H., and Iqbal, Z. (2008). Risk Analysis for Islamic Banking. Washington: the International Bank for Reconstruction and Development/the World Bank.

In-Text Citation: (Khalil & Ali, 2015)
To Cite this Article: Khalil, S., & Ali, L. (2015). Risk Management Practices in the Conventional Banks Working in Peshawar. International Journal of Academic Research in Accounting Finance and Management Sciences, 5(2), 72–79.